Allentown claims 2nd property for arena

Scott Kraus, Of The Morning Call

Not long ago, city officials were touting the Dime bank building as an architectural jewel with a bright future at the nexus of downtown Allentown.

But with a new plan to build a hockey arena at Seventh and Hamilton streets, the city moved Wednesday to condemn the historic Dime Savings and Trust property. The city has said the building at 12 N. Seventh St., which appears on the National Register of Historic Places, may be incorporated into the arena's façade.

It's the second time the city has opted to take property for the arena using eminent domain.

On Aug. 24, after failing to reach an agreement on the purchase price of a property at 719 Hamilton St. with New York City-based owner The Heights Real Estate Co., the city filed to take that property using eminent domain.

Dime bank owner Michael McClave, a senior associate salesman with New York City-based CitiHabitats, said he had learned Thursday of the condemnation and has not decided whether to fight it. He said he thought he was still in negotiations with the city.

"I assumed the talks are ongoing," McClave said.

Gene DiPalma, a local agent representing The Heights Real Estate Company, said last week that the owner of that building was also continuing to talk with city officials.

Each owner has 30 days to file objections to the taking of their property. Otherwise, the city can take ownership while the courts settle any dispute over what is just compensation.

Last week, city officials said 25 of 34 properties they need to acquire to build the arena had either been purchased or were under agreement. City officials would not update that number Thursday. The Lehigh County Recorder of Deeds Division lists only six properties that have been purchased.

City spokesman Mike Moore issued a statement on behalf of Sara Hailstone, Allentown's director of community and economic development, that said the city would not negotiate the property purchases in the media.

According to the statement, the city continues to negotiate with property owners in the zone in hopes of reaching fair and amicable agreements, but may file additional eminent domain actions if it is unable to come to terms with an owner.

"The city remains committed to continuing to work with property owners," Hailstone said, according to the statement. "We will continue to keep the residents of Allentown, the media and the business community informed of our progress and process."

The city hopes to begin demolition of properties in the footprint of the arena in November in an effort to open the $100 million, 8,000-seat arena for the minor league Phantoms, the Philadelphia Flyers' top affiliate, by the fall of 2013.

In May, the Allentown Commercial and Industrial Development Authority approved taking out a $35 million loan to cover property acquisition and site preparation.